Kandle Company Paid a Dividend of $4

Kandle Company paid a dividend of $4.76 per share this year and plans to pay a dividend of $5 per share next year, which is expected to increase by 3 percent per year subsequently. The required rate of return is 15 percent. The value of Kandle stock, according to the dividend discount model, is $____.

A) 39.67
B) 41.67
C) 33.33
D) 31.73
E) None of these are correct.